GoPro third-quarter revenue misses estimates, cuts full-year forecast

The company is trading below its 50-day moving averages of 14.98 and down from 200-day moving averages of 12.77. The company expects the weakness to continue well into the key holiday quarter as well, as its new products fail to offer any respite to its profitability woes. (NASDAQ:GPRO) traded 5.52 Million shares and was closed at $12.48 per share.

The shares, which were halted pending the earnings report, closed down 7% to $11.94 Thursday in NY before the results were released.

GoPro’s report was also extremely disappointing on the top and bottom lines. Shares of GoPro and Fitbit have a correlation coefficient of 0.89 out of 1, according to FactSet.

GoPro, Inc. engages in producing wearable HD camcorders, known as action cameras and related accessories.

GoPro’s newly released camera and drone were not able to make the cut of the financial report that ended in September. The Company also offers two software applications: GoPro Studio and GoPro App. GoPro Studio is a video editing tool that allows users to create videos from their GoPro content. The figure badly missed analyst estimates of $316 million for GoPro’s sales. It doesn’t look like the losses are temporary. The cloud communications platform company posted an adjusted loss of 4 cents per share, which was smaller than the 8 cents per share loss analysts were expecting.

Investors on edge about GoPro’s slumping sales ahead of its quarterly report on Thursday appeared even more anxious following fellow consumer gadget maker Fitbit’s dismal revenue forecast late the day before.

In other GoPro news, Director Edward A. Gilhuly sold 700,000 shares of GoPro stock in a transaction dated Friday, August 19th. However, it would take GoPro another year before it can churn out any profit.

GoPro is banking on the success of its new drone and flagship Hero camera to boost sales. The company had said in mid-October that it had temporarily stopped selling the new camera on Amazon in the United States while it negotiated prices. And furthermore, we anticipate difficulty catching up to meet forecasted demand during the fourth quarter. The management has confirmed that its shipments were delayed during the quarter because of production issues.

In the case of GoPro, the high-def capability and waterproof cases aren’t enough to persuade most consumers to pony up $199 and up for a camera that’s designed for surfers, skaters and adrenaline junkies, according to Palmer. It’s desperately trying to enter the mainstream market.